Buying off-the-plan refers to entering into a contract to purchase a property before the expiry of the dwelling’s construction or the certification of the subdivision plan.
Because the product isn’t complete when the contract is signed, it’s vital to have someone with experience in the field analyze it. The inability to read the agreement carefully can expose the buyer to many unnecessary hazards.
Bestway can assist you by performing a detailed review of the deal and negotiating any required revisions to protect your position. Some of the aspects of buying off the plan that our staff can discuss with you are listed below.
- Keep an eye on the builder and the developer.
Check to see if the developer has a strong track record. Inquire about prior developments to evaluate the quality of the construction also previous purchaser’s opinions of the developer’s/work builder and readiness to correct problems. Make sure to look at past advancements as well. Defects frequently take a long time to manifest.
- Make sure the price is reasonable.
New construction commands a higher price. Avoid being misled by the quality of the fittings and finishes. Look for similar structures in the neighborhood and calculate the worth of a property on a square meter basis. Professional help is available and highly advised in this case.
- What method will you use to pay the purchase amount at settlement?
Agreements become irreversible once signed or any cooling-off period has expired (if applicable). That means that trying to secure financing does not absolve you of your obligation to finish the deal. That could be a problem because financial institutions won’t be able to provide you an unconditional loan approval until the construction or registration is done. As a result, the following situations may cause you to be unable to acquire financing when you are obliged to settle:
● Changes in your financial circumstances
● Bank loan Criteria
● Settling date
● Valuation
- Dispute Settlement
Informal dispute resolution clauses can be a great alternative to costly and unpredictable litigation if disagreements occur. It’s a good idea for both parties to include clauses that, if there are any issues (for example, whether a fixture substitution is acceptable), an independent party will be established with the power to make enforceable findings.
- Warranty
Home Warranty Insurance is usually provided when residential construction work exceeds a certain level. Owner builders and multi-story developments, however, are exempt. Make sure you understand your rights in the event of a problem with your transaction.
Buying property or a house is one of the most hectic and costly endeavors you will ever do. You must seek legal guidance from a property law expert who is familiar with the subject.
Our knowledgeable and friendly property and conveyancing lawyers can help you understand more about buying an off-the-plan property and your obligations and responsibilities. At Bestway, We will discuss with you and walk beside you as you take some action to own your house or property.
Call us today at 03 8394 8193 to talk about your concerns or fill out the online form.